P 52NETWORK SHENETWORK Can you afford your retirement? As healthcare and living standards improve, so does our longevity. A male aged 65 is now expected to live to almost 83† and a female even longer. This, along with the attraction of early retirement, means some of us could be looking forward to a happy retirement lasting perhaps more than 30 years. At the same time, however, birth rates have been falling. Fewer couples are having children – and those who do are having fewer and leaving it later†. As a result, a thriving workforce that was once more than able to support our elder population is becoming far less able to do so. So, whilst we may be looking forward to long and carefree days, finally free of the rat race, the question needs to be asked – is our pension provision good enough to pay for it? Take stock then take charge! The first step towards getting on track is to understand where you are now. How many companies have you worked for and how many offered pension plans? How many plans have you taken out yourself? What other provision do you have – eg: savings accounts, investment plans, perhaps a second house or even your own business. Then you need to take charge. Your pension fund could end up as one of the largest assets you have, but how much is it actually going to pay you? £ 10,000 might buy you a one- off luxury trip round the world, but it is not so impressive if you need to plan many years of holidays. Liz Faye is a Senior Financial Adviser and founder of Palm Financial Care Limited. For a free initial consultation on mention of this article, call on 01282 613006. For further details, please go to www. palmfc. co. uk † Source: National Statistics Office and Government Actuaries Department, Life tables published in 2006, based on 2007 estimated figures for life expectancy. www. statistics. gov. uk and www. gad. gov. uk Looking out for the futurebyLiz Faye

SHENETWORK SHEP 53 ......................................................................... Will I automatically receive a penalty if I have not filed my 2007/ 08 Tax Return by 31st October 2008? 31st October is the deadline for filing a paper Tax Return. If you choose to file a paper Return after 31st October, you will trigger the £ 100 penalty. If you have missed the paper filing deadline you can avoid the penalty if you file your Tax Return online before 31 January 2009. Audit thresholds are changing, will my Company now need an audit? The audit thresholds have increased from 06 April 2008, meaning if your company did not require an audit in the past it is unlikely that it now will require to be audited. A company now requires an audit if any of the following apply: • Annual turnover is £ 6.5m or more. • Balance sheet total is £ 3.26m or more. • Average number of employees is 50 or more. I have heard my Limited Company could be affected by legislation called IR35, what is this? There have long been tax advantages to being self employed rather than an employee. IR35 applies where the HMR& C determine without the Limited Company you would be treated as an employee. Factors which could cause concern are:- ( i) You only work for one client on a long term contract. ( ii) You perform the service personally. ( iii) You work at the clients premises. ( iv) You invoice an hourly charge rather than set cost per job. ( v) Equipment is provided by the client. There are links on our website to a useful employment status indicator tool from HMR& C and further information on IR35. Can I now claim 100% First Year Allowances on additions? From 6th April 2008 ( 1st April for Companies) you will be able to claim 100% Writing Down Allowances on the first £ 50,000 capital expenditure. The remaining capital expenditure, along with the previously purchased assets brought forward will be written down at 20% ( previously 25%). Nick would be pleased to accept your accountancy and tax questions for the next issue. Send them to Network She, PO BOX 142, Llandudno, LL30 9BL or email to info@ networkshe. co. uk Mr. Nick Hulson, BSc FCA is a Chartered Accountant and a partner in Harold Smith, one of North Wales' oldest and largest accountancy firms. Q Q QQ Sound tax advice www. haroldsmith. co. uk